How working with a planner can help to reduce your financial anxiety

Category: News

In the past few weeks, it has been hard to read the news without a twinge of worry. From the rising price of food and fuel to the fall in stock markets, there have been several major shocks that have affected the national economy.

As a result, many people have become more anxious as their finances seem more precarious than they did just a few months ago. According to a survey published by Money Expert, around two-fifths of Brits are concerned about their finances.

If the recent economic shocks have made you worry about your progress towards your goals, read on to find out how working with a planner can help to put your mind at ease.

The war in Ukraine has caused significant market volatility

During difficult periods, when the value of your portfolio falls, it can be easy to worry about whether you’re still on track to meet your goals. This is why the recent economic volatility may have made you anxious.

In the past few months, international markets have experienced several major shocks. Not only have they had to endure lingering uncertainty of another coronavirus outbreak, but the recent outbreak of war in Ukraine has caused even more volatility.

As you’ll know, markets don’t like uncertainty, which is why, when armed conflict broke out in late February, many investors panicked. According to City A.M., the value of the FTSE 100 fell by 3.9%, its biggest fall since the early stages of the coronavirus pandemic.

Furthermore, as the economic impact of the war began to be felt in the UK, further dips followed. According to the Guardian, the index fell a further 2.2% as investors worried about the prospect of a recession in the UK.

The cost of living has increased sharply in the past few months

Another issue that may have concerned you is the recent spike in the cost of living, as the war disrupts global supply chains.

Due to the western sanctions imposed on Russia, the cost of oil and gas have increased sharply. Furthermore, due to the conflict disrupting Ukraine’s agricultural exports, the price of many different types of food have also surged.

As a result, there has been a significant spike in the rate of inflation in the past few weeks. According to data from the Office for National Statistics (ONS), the Consumer Price Index (CPI) rose to 9% in the 12 months to April 2022.

Not only could the rise in the cost of living slow down your progress towards your financial goals, but the government’s response to this problem could negatively affect you too.

To help get inflation under control, many central banks have had to raise interest rates to take some heat out of the economy. But while this can help to slow the rise in the price of goods and services, it’s something of a double-edged sword.

As interest rates rise, debt becomes much more expensive. This can mean that if you have a mortgage and you’re on a tracker-rate product or your lender’s standard variable rate (SVR), your monthly repayments could rise sharply.

Working with a planner can help you to regain a sense of control over your finances

With all this going on, it can be easy to feel anxious about whether you’ll be able to reach your financial goals. Whether you’re saving to secure a mortgage deposit, start a family, or even retire comfortably, the recent world events may have rattled you.

If you’re concerned about your future, it’s important to regain a feeling of control over your finances. This is where seeking professional advice can really benefit you.

Worries about market volatility

When you work with a financial planner, they can help you to build a robust and well-diversified portfolio.

Diversification is essentially the act of not putting all your eggs into one basket. By holding a spread of assets from across a variety of economic sectors and geographic locations, you can minimise the impact that market volatility has on your portfolio.

Worries about the rising cost of living

If you’re concerned about the rising cost of living, a planner can offer you useful advice about how to budget effectively. This can help you to minimise the impact that the cost of living has on your lifestyle.

Worries about rising interest rates

If you’re currently on your lender’s SVR and are concerned about rising interest rates, a planner can help to find a fixed-rate mortgage that could be right for you. This can give you much greater peace of mind to know that, even if mortgage rates were to rise, you’d be unaffected.

Get in touch

If you’re worried about how recent events will affect your finances, we can help. Email us at or call 0330 320 5048.

Please note:

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

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